Elon Musk denies plans to spin off Tesla's China operations
Elon Musk has dismissed reports claiming Tesla considers spinning off its China business to enable a potential merger with SpaceX.
Tesla chief executive Elon Musk has dismissed reports that the electric vehicle manufacturer is planning to spin off its Chinese operations. The denial follows a report by The Wall Street Journal, which cited an unnamed source claiming Tesla considered the restructuring to facilitate a potential merger with space exploration company SpaceX.
According to the report, Tesla's extensive business presence in China could present regulatory or strategic hurdles for a closer integration with SpaceX. Musk publicly rejected the claims on social media, labeling the reporting "Fake News".
SpaceX and Tesla remain separate corporate entities. Neither firm has issued further formal statements regarding corporate restructuring or potential consolidation between the two companies.
Sources: FAZ.